The BSE Sensex and Nifty fell as much as 2 percent on Monday and were heading towards their biggest single-day drop in three months as stronger-than-expected US jobs data raised expectation that the Federal Reserve would raise interest rates sooner than previously thought.

The Nifty fell as much as 2.04 percent, while the benchmark Sensex dropped as much as 2.05 percent. Both indexes were headed for their biggest daily falls since Jan. 6.